We recognize that any plausible program of annuitizing
either 401(k) plan balances, or Social Security Individual Accounts would result in only a proportion of the household's unannuitized wealth being annuitized.
There's always going to be an agent out there hunting for a commission that's going to show you why his product is so much better than the one you have," Voudrie said, noting a possible reason why people aren't annuitizing
You can avoid this dilemma by annuitizing
a private pension, but since annuity-purchasers tend to live longer, insurance companies charge a steep premium for this service.
We are interested in determining the effects of annuitizing
saving in order to determine whether annuitization should be a part of a modified social security structure, as has been suggested by the IA plan.
Many variable annuities now offer an optional feature called a "living benefit," which for an additional charge, provides the variable annuity owner guaranteed lifetime income, without annuitizing
So the risk of not annuitizing
grows as people get olden The probability of a single life male pensioner outliving assets taking an income of 80 percent of the annuity income increases from 20 percent at age 65 to 36 percent at age 85.
Instead, Polkinghorn expects people will come to see the value of annuitizing
for a period-certain and life, in which the periodic payments continue for a guaranteed period but also continue should the annuitant live longer than his or her life expectancy, as half will.
The study also found that, when examining households by income level, individuals with a high-net worth were most impacted by not annuitizing